It is not only that analysts are concerned about AMD, they are not overly optimistic about Intel, either. Despite the fact that after its Q3 2010 earnings Intel said that it is aiming for the best year in its history analyst Christopher Danely of J.P. Morgan is warning that things are not that shiny in Intel’s kingdom.
The Asian PC food chain has made lower than expected orders, most likely as they are waiting for Sandy Bridge, a CPU architecture that launches in first days of January 2011, at the CES 2011 trade show.
Chris also says that Asian contract manufacturers shipments were six percent down sequentially for this month versus Intel’s guidance that shipments will remain flat or go down by three percent. They are very certain that with current pricing Intel is aiming to miss the $11.4 billion guidance and the only way to match it is to increase the prices for November and December.
However, the same chap came to a conclusion that Sandy Bridge, the next generation Core architecture won’t drive demand in Q1 2011. “Although Intel seems to believe that its upcoming Sandy Bridge processor will drive demand, we cannot find evidence of delayed PC purchases for it,” he reports.
Danely calls Sandy Bridge graphics evolutionary, not revolutionary and as a result of its analysis they believe that Intel can decline in revenue by nine percent in Q1 2011, from 11.1 billion in Q4 to 10.1 billion in Q1, he predicts.
This is the second Intel generation to launch in Q1 2011 and if the JP Morgan is right, a quarter delay for the last two product generations will finally hit Intel hard. The good thing is that Ivy Bridge, the next generation 22nm processor lineup should come back to Q4 2011 launch schedule and be out before Christmas.